Euro Starts The Week Lower
The euro began the week on the back foot, trading at $1.3428 at 5:50 GMT on Monday morning.
The common currency continued to decline after falling 0.7 percent last week as both economic data from the bloc and tension between the West and Russia weighed.
The European Union is widely expected to impose new economic sanctions on Moscow this week as Ukraine’s crisis continues without any efforts by Russian President Vladimir Putin to stop it.
After a passenger plane was mistakenly shot down over Ukraine, accusations as to who shot it down and where they got the sophisticated machinery have been flying.
The U.S. has accused Moscow of providing Ukrainian separatists with the missiles used to take down the airline jet. The White House has also alleged that Putin is continuing to send over heavy-duty arms to separatist troops.
Reuters reported that the European Union is expected to come to a final agreement regarding the sanctions against Russia on Tuesday. EU leaders are faced with the difficult task of creating new sanctions against one of the eurozone economy’s biggest trading partners.
The new sanctions are expected to ramp up the pressure on Moscow by targeting large parts of Russia’s economy rather than just individuals and businesses connected with the government.
Meanwhile, economic data from the bloc due out this week is expected to put further pressure on the currency as most are still betting that the European Central Bank will be forced to implement some type of quantitative easing package in the months to come.
Economic data out on Wednesday is expected to show that eurozone inflation remained constant at 0.5 percent in July and that the region’s unemployment rate was also unchanged at 11.6 percent in June.
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